There are many rumors about the newly launched GST tax. In this article, we will discuss GST Rumors VS Reality.
This is all due to lack of proper information and to also due to fewer efforts made on educating people about GST.
As an individual, GST could have been a big success if rolled out properly.
It is considered to be the biggest tax reform. GST has been launched merging most of the taxes. This has increased the complexity.
Continuing the previous tax system, if GST would have been launched on trial basis it would have been better.
The major benefit of this would be to the government. They would have known the loops of the system.
Nowadays, we frequently see GST Council issuing notifications for the changes made in the laws.
There were no pre-launch preparations done to educate the general public for the smooth run.
Though GST being a boon in long run, it has put a negative impression on people’s minds.
In addition to that, the rumors have made people more negative and unwilling to get registered under the tax regime.
Let us discuss such rumors against their real facts.
GST Rumors VS Reality
Yearly 37 Return
The business class is really worried about the return structure under GST system.
This is the first myth that there are 3 returns monthly and 1 annual return. Thus compiling it to 37 returns a year.
Every person has to report his sales in GSTR-1. GSTR-1 is only the return that you need to file with complete details of your supplies.
Again coming to your purchase, your supplier will file his GSTR-1 which will be your GSTR-2. In GSTR-2, you just need to approve the invoices for which you have made the purchase.
Thus, you don’t file GSTR-2 but just approve your purchases.
As per your GSTR-1 and GSTR-2, your monthly return GSTR-3 will be auto-populated.
Coming back to annual return, with minor adjustments this will also be auto-populated.
According to me, if every supplier files his GSTR-1 carefully then this process can work very smoothly.
To simplify this process, many GSTR filing software has been introduced. Using one of them will release you from the hectic burden of GSTR filing also.
Mandatory E-Payment of GST Challans
Another rumor about GST is that only online payments or e-payments are acceptable for payment of GST Challan.
Reality is that you can make payments over to authorized bank counters in cash. Cash Payment has a limit of Rs. 10,000 per challan.
Manual Billing Not Allowed
Third rumor is about GST is the manual billing. Actually, the manual billing is acceptable under GST. If you use computerized billing it would ease your GST return filing process.
Requirement of Full-Time Accountant or consultant
Having full-time accountant or consultant is not mandatory under GST regime.
If your business is mall and you are able to manage your accounts, there is no need for full-time accountants or consultants.
Sometimes in as of any dispute you might require the guidance from a CA or Tax-Consultants.
Apart from that, there are many simple and easy to use softwares which can help you managing your GST Compliant Billing and GSTR filing.
The businesses with higher turnover have thier full-time accountants and so there is no additional cost on you.
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